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Closed Bank Account

Dave T

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I try to always ask the client if they are using the same bank account as the previous year for either direct deposit or direct debit.  Well I ask the client and yes, same as last year so i go ahead and e-file.  Several days later after return has been submitted and accepted client calls to tell me that account had been closed due to fraudulent activity last year.

Client calls the bank to see if account can be reopened to accept deposits only but no luck. 

I am assuming that refunds will then bounce back to IRS and state and they will eventually get a check in the mail.  Client has called twice wanting to know what else if anything she can do?  I think it is just wait for the check to show up.

Thank you


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I found a way {proseries} to put the account number on the filing instruction letter so the taxpayer can see it before sending me the 8879.  Next year, when I have time, I will add it to my engagement letter and have a place for client to initial.

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Like Catherine, I always use the Transaction Summary from Drake and have the client sign.  One time client yelled and screamed at me when there direct deposit was rejected.  When I told them they would have to wait for a check in the mail they demanded  that I give them the money because they needed it for a down payment on a car.  I pointed out that they had signed the transaction summary verifying the bank info was correct and t hey told me they didn't read it first and it was all my fault.  Needless to say they became ex-clients at that point.

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Yes, I have client initial or sign everything.  And the state of Ohio also has a disclosure statement that must be checked:

Check this box to indicate taxpayer has read the disclosure statement(s) related to the direct deposit option selected.  The Ohio Department of Taxation is not respnsible for the misapplication of a direct deposit refund into a checking, savings, IRA or 529 College Advantage account that is caused by the error, negligence, or malfeasance on the part of the taxpayer, electronic filer, financial institution, or any of their agents.


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